Part of the registration payment for each vehicle registered in Victoria goes to the Transport Accident Commission. This charge currently appears on your VicRoads renewal notice as 'TAC Premium' and, in some places, as 'TAC Charge'. All these terms are one and the same and may be used interchangeably.

What the TAC charge is used for

The transport accident charge is used to fund the work of the TAC in preventing accidents and supporting those who have been injured on our roads.

Last year over 45,000 people were supported in their recovery by the TAC following a transport accident. Funds from the TAC charge go towards providing these injured Victorians with treatment and income support to assist them in getting their lives back on track.

The TAC charge will also cover you for any liability (including large court payouts) if you are at fault in a transport accident and cause the death or injury of another person. Please see Section 94 of the Transport Accident Act 1986 for details about who is covered.

The TAC also works closely with VicRoads, Victoria Police and the Department of Justice to implement Victoria's road safety strategy, which seeks to reduce death and serious injury on our roads by more than 30% by 2022.

In the next ten years the TAC has allocated over a billion dollars to improving Victoria's roads. Those funds will go towards targeting high-risk accident locations, installing roundabouts at intersections, and implementing run-off road preventions such as wider shoulders, ripple strips and wire barriers.

The TAC also provides innovative public education campaigns to encourage the community to make the right choices on the roads to stay safe. See our latest campaigns here.

How the charge is calculated

The TAC Charge for a motor vehicle varies according to several factors and the charge is determined by VicRoads when you register the vehicle for the first time.

Firstly, VicRoads will determine the type/use of the vehicle (class), which includes passenger vehicles, goods vehicles, motorcycles, miscellaneous vehicles or special use vehicles (this may also include taking into account how many seats are in the vehicle).

Secondly, VicRoads will look at the postcode where the registered vehicle is usually kept (risk zone). Your vehicle will be registered in either a low, medium or high risk zone. A list of all zone postcodes is included on the Premium Brochure.

A discount may apply for eligible pensioners. Please contact VicRoads to see if you are eligible for a concession.

These three factors will determine what TAC Charge you will pay.

The Transport Accident Act 1986 provides for TAC Charges to be automatically indexed by inflation (CPI) on 1 July each year.

TAC charge concessions

Pensioners may be eligible for a reduced TAC charge. Contact VicRoads to see if you are eligible for this discount.

Motorcycle Safety Levy

In May 2002, the Victorian Government announced that a Motorcycle Safety Levy would be introduced. The funds from this Levy go directly to initiatives to improve the safety of riders. These initiatives include on-road and non-road related projects.

The levy is incorporated into the TAC Charge for motorcycles with an engine capacity of 126cc or above, and is passed onto VicRoads to administer the project funding. Currently the levy is $73.70 as it is automatically indexed by inflation (CPI) on 1 July each year.

The levy is paid just once by each motorcycle owner, any additional motorcycles you own will be exempt from the levy.

Unregistered Vehicle Permits

An Unregistered Vehicle Permit (UVP) can be obtained from VicRoads which includes a payment for the TAC Charge if you need to drive an unregistered vehicle, or a vehicle which is exempt from needing to be registered, on a public road or highway. This may apply to situations such as when you need to drive an unregistered vehicle directly to the nearest VicRoads office to be inspected and registered, or you are driving a visiting overseas vehicle that is registered in another country.

If you are involved in an accident on a public road in a vehicle that is not registered or covered by a UVP, the TAC can seek financial recovery of any payments made on behalf of any person injured from the owner and driver. The TAC also cannot pay loss of earnings to the owner of a vehicle which was not covered by the TAC charge if they were a driver or passenger at the time of an accident.

For more information on the Unregistered Vehicle Permits, please refer to the VicRoads website.